Dealership's inquiry effect on Finan. Inst.'s inquiry

Dealership's inquiry effect on Finan. Inst.'s inquiry

When buying a car, the dealership will pull your credit first, then the finance companies will pull your credit. So you will always have at least 2 pulls when buying a car (one from the dealer and one from the financial institution).

Well here's my question......If the dealership pulls the report first, and then the finance companies pull the report second, do the finance companies pull a slightly lower score than what the dealership pulled because of the inquiry by the dealership......???

I don't mind multiple inquiries as long as the scores are the same between them all.

Re: Dealership's inquiry effect on Finan. Inst.'s inquiry

I do not think so because the dealership pulled 9 times for me and only got one approval because I got rejection letters or decline of credit letters from all the banks listed in the INQs for the bureau that approval was in the middle of the inquiries so I have had at least 5 before that approving bank

Re: Dealership's inquiry effect on Finan. Inst.'s inquiry

When I bought my car...I left with 11 inquires. Dealership pulled my credit and then I got pulled by several banks. I already had financing but I wanted to see if they could beat my rate. I wasn't worried about inquires but I wanted to know what rate I deserved. They matched my rate. I wanted in-house financing for the car I bought (Hyundai car--Hyundai finance). It was simple. So now I'll have good credit tier with Hyundai if I ever traded up.

Re: Dealership's inquiry effect on Finan. Inst.'s inquiry

Most dealerships use a "shotgun" approach when it comes to financing. They will submit all apps simultaneously, before hearing back about the results and terms. As a result, it can often result in unnecessary hard inquiries.

When I applied for an auto loan back in feb, the dealership did 6 apps for me. Ended up I could have just gotten financing from BMW directly for their best rates. Chase, BofA and other banks approved my loan, but ended up not needing them since they had worse terms and I just need 1 car.

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IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.